Many in the public are unwilling to contribute money toward neuromuscular disease research until members of their own families suffer from a neuromuscular ailment. If left strictly to the private market, what is the likely outcome?
A) an overallocation of resources to neuromuscular disease research, relative to the efficient level
B) an efficient quantity of resources devoted to neuromuscular disease research
C) an underallocation of resources to neuromuscular disease research, relative to the efficient level
D) zero dollars devoted to neuromuscular disease research

Question

Quizplus · Accepted Answer

The public's unwillingness to contribute money toward neuromuscular disease research until they are directly affected by it creates a situation where the private market is unlikely to allocate sufficient resources to research and development in this area. This is because the private market tends to focus on areas where there is a higher likelihood of profit, and neuromuscular diseases may not be profitable enough to attract private funding. Therefore, there is likely to be an underallocation of resources to neuromuscular disease research, relative to the efficient level, if left strictly to the private market.

Many in the Public Are Unwilling to Contribute Money Toward